Long--What do you think about Levi & Korisinsky investigation into possible Breaches of Fiduciary Duty by the Board of Directors of Ligand Pharmaceuticals? Just wonder if LGND received a buyout offer or (more likely) offer on one of their assets?
i spoke to Levi & Korisinsky's associate today and they are looking for someone to represent in an action against the board for overcompensating themselves at total of 26,000 shares last year. I explained to the associate that I am sure that now that this has been brought to everyones attention' the board will retify the unintentional violation all on their own.
I contacted LGND IR but they said they have no idea what this is about. I also contacted L&K, they said that the attorney who handles the case is tied up and they will get back to me. Whatever it is, the market reacted positively: LGND was up~2% on Friday before the announcement, then jumped a couple of % pts after the announcement, and ended the day up 4.95%. It is possible that there was some kind of offer that LGND turned down., either an outright buyout, or perhaps the royalty stream or selected pipeline candidates. It's also possible to make an argument that shareholder value hasn't been maximized given the assets that LGND holds: the gap between Roth PT @ $50 and current pps of $28. It's going to be interesting to see how this plays out., so far indications are that things are heading in the direction of higher valuation.